Market Size of Israel ICT Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 52.45 Billion |
| Market Size (2029) | USD 61.90 Billion |
| CAGR (2024 - 2029) | 3.37 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Israel ICT Market Analysis
The Israel ICT Market size is estimated at USD 52.45 billion in 2024, and is expected to reach USD 61.90 billion by 2029, growing at a CAGR of 3.37% during the forecast period (2024-2029).
The growing emphasis on digital technology, cyber security, artificial intelligence, robotics, and healthcare IT in Israel is significantly driving the market's growth.
- Moreover, the increasing demand to explore and adopt digital technologies and initiatives, the increase in the overall demand for digitalization and scalable IT infrastructure, the wide adoption of the 5G network, and the rising penetration of technology giants are boosting the growth of the ICT market significantly.
- According to the IMF (International Monetary Fund), Israel's GDP is expected to grow to USD 678.59 billion by 2027. The county's GDP is growing significantly with increasing IT investments that would create new growth opportunities for the Israel ICT market.
- Key players in the ICT market are taking initiatives to deploy 5G services in Israel. For Instance, Cellcom was awarded a 5G license from the Israel Ministry of Communication (MoC). Cellcom 5G network is deployed to provide 5G services for the location, including Ashdod, Haifa, Jerusalem, Netanya, Rishon LeZion, Petah Tikva, and Tel Aviv. The demand for deploying 5G services will significantly grow in the future with the growing number of IT tech parks.
- Government authorities are working with private IT and telecom service providers to expand their telecom sector. For Instance, Israel's Ministry of Communications established a tentative outline to shut down 2G and 3G networks by the end of 2025.
- The COVID-19 pandemic had minimal impact on the Israel ICT market. But during the COVID-19 lockdown digital transformation, companies realigned their IT strategies, automated processes, managed operational costs, and implemented new systems for better and improved efficiencies. In addition, emerging technologies such as robotic process automation, artificial intelligence, big data, machine learning, cloud computing, the internet of things, blockchain, cybersecurity, and augmented/virtual reality have helped to a great extent to accomplish these goals and create new growth opportunities for the ICT market.
